The cannabis industry has been a roller coaster. Last year, several pot stocks doubled, tripled, and even quadrupled in value. Billions in market value accrued in a matter of months. Countless millionaires were minted.

This year has been a different story, however. Both large and small, marijuana stocks have struggled. Some well-respected companies have seen their share prices slashed in half.

The downfall has created some once-in-a-lifetime opportunities. The following stock picks aren’t without risk, but they offer a real chance at multi-bagger potential. If you want to hit a home run, these are your best options.

All about partners

Hexo Corp. (TSX:HEXO)(NYSE:HEXO) bills itself as “the future of cannabis.” That sounds great, but what does it actually mean? Unlike other pot stocks that focus on a specific niche, Hexo is positioning to become a vertically integrated operator.

It has a 1,310,000 square foot grow facility in Quebec that can produce 108,000 kilograms of cannabis per year, a 58,000 square foot distribution center in Montreal, and a 579,000 square foot facility in Ontario for processing, research, and development.

In summary, Hexo wants to grow, process, and package cannabis into value-add products, controlling the entire supply chain.

In addition to its own production, Hexo aims to become a platform company capable of partnering with larger brands to co-create “Powered by Hexo” products.

The ultimate goal is to work alongside Fortune 500 companies, particularly mega consumer brands like PepsiCo, Inc., Kraft Heinz Co, and Procter & Gamble Co.

Those partnerships aren’t yet a reality, but Hexo has been building the infrastructure necessary to provide those major players with turnkey access to quickly create and manufacture quality cannabis-based products.

Whether Hexo succeeds will hinge on its ability to close future partnerships. The average analyst anticipates the company earning $344 million in revenue next year, but the range of estimates is incredibly wide.

Long term, a few key partnerships will make or break the investment story, especially if the company can position itself as a plug-and-play acquisition candidate.

Shares are likely one or two deals away from doubling or even tripling in price, but if those deals never materialize, it will be hard to justify the current valuation.

Big head start

Canopy Growth Corp (TSX:WEED)(NYSE:CGC) isn’t worried about attracting big partners—it already has one. Constellation Brands, Inc., a $40 billion consumer brand behemoth, made a $5 billion investment and holds warrants that could boost its stake even further.

The company is fully focused on building a deep competitive moat with industry-leading research and development as well as patented intellectual property. Canopy already has 90 issued patents and 240 patent applications filed with many more under development.

Unlike less mature peers, however, Canopy is fully operational. Last quarter it shipped 1,800 kilograms of medicinal marijuana and 8,200 kilograms of recreational cannabis.

Revenues grew 400% year over year in 2018. When it comes to cannabis companies, Canopy Growth is becoming the industry standard.

In total, management believes that cannabis will be a $250 billion global opportunity. It wants to dominate value-add products like sleep aids, animal health products, pain relief therapies, functional beverages, and more.

Over the long term, Canopy is one of the best positioned cannabis companies on the market. Its current $11 billion market cap could easily have 500% upside over the next decade, but it will be a long road to get there.

Shares are priced at the very high end of the industry, at 19.7 times 2020 sales. If management fails, this stock could have 80% downside or more. Canopy Growth has benefited thus far by being early, but it still needs to prove that it can execute.